Buy Tech Without ‘Cool Factor’: Forrest
On CNBC's "Fast Money," the portfolio manager with $1.2 billion in assets under management said that the technology sector had lagged the recent stock market rally because of "the tremendous slowdown" in capital spending.
"I don't think investors really wanted to buy at that point until they saw what that trough would do," she said.
Instead of investing in such well-known names as Apple and Google, Forrest looked to "nerdy metrics" to evaluate stocks in the business-to-business space.
"I think I saw DRAM chips are up something like 82 percent since December, and this just doesn't happen," she said. "So that says people are buying computers, and there's a supply-demand problem here."
Forrest said that her top pick was SanDisk.
"They are just having a great year so far with respect to the pull-through demand, and we think pricing – they're going to be able to have much greater pricing this quarter, probably into the next quarter, so that's where we'd look," she said.
Next on her list was Intel, which she said was "very, very unloved at this point."
"I think investors tend to think of them as a PC maker, chip maker, and we really see that they have an opportunity to move into the mobile space," Forrest added. "And we're a believer in that story."
Forrest said that she did not hold stock in Apple or Google and didn't look to what was popular.
"I'm really terrible about picking out what consumers like," she said. "I know what business like, and I'm sticking to it."
Trader disclosure: On March 11, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Stephen Weiss is long BAC; Stephen Weiss is long C; Stephen Weiss is long OI; Joe Terranova is long VRTS; Joe Terranova is long SJM; Joe Terranova is long MJN; Joe Terranova is long AXP; Joe Terranova is long GPS; Joe Terranova is long KORS; Joe Terranova is long SWN; Joe Terranova is long GS; Simon Baker is long AAPL; Simon Baker is long WFC; Simon Baker is long FB; Simon Baker is long GOOG.